The demand for luxury real estate remains strong and unwavering

Experts believe that prices have now stabilized at a realistic level, while demand continues to rise. One reason for this is that properties with building permits or simple registration before the end of 2022 qualify for the reduced 5% VAT on housing construction until 2026. Buyers entering the market with a clear intention often target luxury properties, and for good reason. The supply of such premium properties is struggling to keep up with demand, leading to an increasing popularity for high-end offers.

What causes the shortage of supply?

Skills shortages are one of the most pressing issues in the construction industry today. There are fewer well-trained, reliable craftsmen available, while demand for contractors remains high. In extreme cases, especially for new builds, rates can be so elevated that they seem unaffordable for many operators.

The level of interest in land varies significantly by location. The Lake Balaton region and the area around Lake Velence are top choices, with the Budapest area also being highly sought after. However, a key challenge is the lack of available space—sometimes, there simply isn't a place to build. Older properties, while potentially good investments with renovation plans, are often less appealing for immediate homeownership. Renovation costs can sometimes exceed those of building or buying a new property, and the options for renovation are often limited. For instance, the extent of existing utilities can significantly constrain renovation possibilities. Starting from scratch may end up being more cost-effective than renovating an existing property.

Is the desire for luxury real estate not such a luxury after all?

In this context, new luxury real estate takes on a whole new significance. Modern technology, enhanced in every way and aligned with sustainability principles, provides not only exceptional comfort but also enduring value. Building a home becomes an investment in a secure and enjoyable future. A luxury home or cottage offers everything needed for a tranquil and fulfilling life, with maintenance costs kept to a minimum due to its high-quality design. This ensures a strong return on investment from the start, with much more to follow.

In the future, the enjoyment and satisfaction of living in the home will continue to offer financial benefits. The services and amenities provided will enhance the quality of life, making the investment not only worthwhile but potentially yielding significant returns. In essence, an investment that may seem substantial at first can provide many times more value over time.